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Grupo Aeromexico has reached a $40m deal with a group of unsecured creditors to withdraw their objection to the airline's bankruptcy restructuring plan, Aeromexico's lead counsel said on Thursday. The move is the first step in what is likely to be a days-long Chapter 11 bankruptcy hearing out of New York. Despite the agreement with the unsecured creditors' committee, objections still remain from an ad hoc group of junior creditors, most notably Invictus Global Management. As part of the deal, Aeromexico offered the unsecured creditors potential distributions from a four-year, $40m "contingent value right" note which would dole out cash distributions as long as Aeromexico outperforms its targets, counsel Timothy Gaulich of Davis Polk & Wardwell said. "That is very good news indeed," U.S. Bankruptcy Judge Shelley Chapman said after the deal was announced. Aeromexico, which filed for Chapter 11 bankruptcy protection in New York in June 2020, on Thursday began making its case to Chapman for its restructuring proposal, which would infuse new capital into the company and make Apollo Global Management, a frequent investor in distressed companies, the largest shareholder. Though the airline has lined up the support it says it needs from its multiple creditor groups, some still say the plan should not be approved unless junior creditors, some of whom may see just pennies on the dollar, receive better recoveries.<br/>

Shipping company MSC, which has teamed up with Lufthansa on a potential bid for Alitalia successor ITA Airways, wants a majority stake in the airline and to run the carrier itself, its chairman was quoted as saying on Thursday. State-owned ITA, which has replaced cash-strapped Alitalia and started flying in October, has already been looking for equity partners. On Monday MSC, controlled by the Aponte family, and Lufthansa said they were interested in ITA and had asked for a 90-day exclusivity period to study a deal. "The main point is to have the majority of ITA Airways. (Lufthansa) can enter as a commercial partner or minority shareholder," Gianluigi Aponte, founder and chairman of MSC, one of the world's leading shipping companies, told Corriere della Sera. He said MSC would want to manage ITA and would not be a "sleeping partner." Lufthansa has said it would use the exclusivity period to explore all the options for cooperation, "including a possible equity investment" in the Italian carrier. Lufthansa declined to comment further on Thursday. An industry source said MSC could take on most of the effort needed for an ITA acquisition, should Lufthansa opt for a commercial role only.<br/>

Taiwan’s China Airlines said Thursday its board had approved the purchase of four more Boeing Co 777F freighters, adding to an earlier order for six of the same model as it steps up capacity to support the island’s booming exports. The jets would begin deliveries from 2023, it added in a statement. Three of the six previously ordered aircraft have already arrived. China Airlines, Taiwan’s largest carrier and the world’s fifth largest air freight operator, also operates 18 747 freighters. Tech powerhouse Taiwan, a major semiconductor manufacturer, has benefited from demand for tablets, laptops and other gadgets during the work-and-study-from-home trend during the COVID-19 pandemic. Taiwan’s exports rose 29.4% in 2021 to a record high. Boeing this week said it aims to increase its 777/777X production to three aircraft per month in 2022 from two previously, fuelled by orders for 777 freighters amid booming air cargo demand. It reiterated plans to deliver the first 777X in late 2023.<br/>

Korean Air said on Thursday it had record Q4 and annual operating profits in 2021, fuelled by strong cargo demand and freight rates, even though the passenger market stays subdued. The airline more than quadrupled operating profit to 704.4b won ($585.22m) in Q4 over the prior year as peak demand in the year-end holiday season and limits on passenger jet belly space pushed up freight rates. “The airline was able to respond proactively to the global supply chain disruptions and operational restrictions caused by the Omicron variant, and provide clients with reliable services,” Korean Air said. Several large Asian airlines, including Korean Air, China Airlines, Cathay Pacific and Singapore Airlines, have relied heavily on cargo revenue during the pandemic as strict border controls have limited passenger travel. This week, the IATA said international air cargo demand in Dec. 2021 was 9.4% above the level in 2019, but capacity was 6.5% lower, supporting higher freight rates. On Thursday, China Airlines said it had posted record air freight revenues of T$15.4b ($554.08m) in December.<br/>